Michael Sonnenshein, managing director of Grayscale Investments, reportedly sees bitcoin’s future price in one of two possible scenarios: it will either boom to new highs, or it will come down to zero.
According to an interview Sonnenshein did with Fortune on the Balance The Ledger show, there won’t be a middle ground for the cryptocurrency. Per his words, bitcoin has faced “unbelievable adversity” since its creation, and “every day that bitcoin doesn’t go away, every day bitcoin overcomes a new challenge,” tells the cryptoasset manager the flagship cryptocurrency will either boom or bust.
He notably stated:
“It will either survive and become all these amazing things that we think it can be, which will cause its price to be a lot higher. Or it is possible something else may come along that will displace it and Bitcoin goes to zero. It likely will have a binary outcome.”
Sonnenshein, managing director at one of the world’s biggest cryptocurrency asset managers and a sponsor of eight cryptocurrency trust investors, refused to share his own BTC price targets. As covered, some like Wall Street analyst Tom Lee have been rather bullish, predicting the cryptocurrency will hit $90,000 by March 2020. Others, like billionaire investor Warren Buffett slammed bitcoin and claimed it will “come to a bad ending.”
Per Sonnenshein, if bitcoin’s developers manage to continue innovating and improving its technology, they’ll be able to make it more desirable, leading to a price rise. This is the foundation of his bitcoin investment thesis, as he claims people have to “think about bitcoin, again, as an open source protocol.”
The cryptoasset manager argued:
“Any other currency that comes along that allows for another feature—another attribute that maybe Bitcoin doesn’t have—as an open source protocol, [Bitcoin] is able to accommodate, to integrate, to add that aspect into it.”
He added he hopes that as new features keep on being added to bitcoin and other cryptocurrencies, they can continue to “thrive and grow and not be displaced.”
While Buffett and Charlie Munger have argued bitcoin will have a bad ending, Twitter and Square CEO Jack Dorsey has revealed he hopes bitcoin will become the internet’s “native currency.”
Bitcoin is currently trading at $7,346 after falling more than 2.6 percent in the last 24-hour period, according to CryptoCompare. The flagship cryptocurrency saw its price nearly hit $20,000 in mid-December, before it started plunging to little under $7,000 earlier this year.